Eleco PLC Sale of Building Products Manufacturing Businesses (0822G)
June 03 2013 - 2:01AM
UK Regulatory
TIDMELCO
RNS Number : 0822G
Eleco PLC
03 June 2013
For immediate release at 07:00 on 3 June 2013
Eleco plc
("Eleco" or the "Group")
The Construction Software and Building Systems Group
Sale of ElecoBuild's Building Products Manufacturing
Businesses
("the businesses")
The Board of Eleco announces that its subsidiary, ElecoBuild
Limited, has sold the businesses and assets of its four building
products manufacturing businesses to Omnis Industries Limited.
The businesses sold comprise SpeedDeck Building Systems, Prompt
Profiles, Stramit Panel Products and Downer Cladding Systems, which
are all based at Yaxley in Suffolk. Following the disposal of these
businesses, Eleco's continuing ElecoBuild trading subsidiaries will
be Bell & Webster Concrete Ltd, based at Grantham and Milbury
Systems Ltd, based at Lydney, which are both well established
businesses engaged in the manufacture of precast concrete
products.
Based on the audited accounts of the businesses as at 31
December 2012, the assets sold amounted to GBP1.8m; and the
combined turnover and losses of the businesses in the year ended 31
December 2012 amounted to GBP9.7m and GBP(1.2)m respectively. Based
on unaudited management accounts for the 4 months ended 30 April
2013, the assets sold amounted to GBP1.8m; and the combined
turnover and losses of the businesses amounted to GBP2.4m and
GBP(0.4)m respectively.
The consideration to be received at completion by Eleco for the
sale of the businesses is GBP200,000 in cash with a further
GBP25,000 in cash to be held in escrow for 1 year. Further sums may
be received in certain circumstances.
In agreeing the terms of these disposals, the Board of Eleco
placed considerable weight on an agreement by the buyer to extend
TUPE undertakings to all 44 employees of the businesses. Eleco is
also retaining the 116,000 sq ft freehold property currently
occupied by the businesses and has agreed a one year lease with
Omnis Industries Limited.
For further information please contact:
0207 422
Eleco plc 0044
John Ketteley, Executive Chairman www.eleco.com
Matthew Turner, Group Finance Director
0207 808
Peckwater PR - Tarquin Edwards 7340
0207 397
Cenkos Securities plc - Adrian Hargrave 8900
This information is provided by RNS
The company news service from the London Stock Exchange
END
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